Old Mutual agrees £355m sale of asset management arm stake
Old Mutual has stepped up its efforts to overhaul the company by offloading a 446 million US dollar (£355 million) slice of its asset management arm.
The investment giant has sold a 24.95% stake in OM Asset Management (OMAM) to Chinese firm HNA Capital US as it moves closer to carving the business into four parts.
The deal will bring the investment giant's shareholding in OMAM down to 25.9% from 50.8%, once the sale has cleared regulatory hurdles.
Shares fell more than 1% on the London Stock Exchange (LSE) in the wake of the announcement.
Group chief executive Bruce Hemphill said the sale will bring forward " further realisation" of Old Mutual's value.
"It represents another step in delivering our managed separation strategy and secures a strategic long-term investor for OMAM," he added.
The FTSE 100 firm announced in March last year it would break up its asset management business, its UK-based wealth unit, a South African-based emerging markets operation and its stake in Nedbank in South Africa.
The move will make Old Mutual Wealth a standalone firm on the LSE.
OMAM has 240 billion US dollars (£191 billion) worth of assets under management, a net income of 145.1 million US dollars (£115 million) and total assets of 1.3 billion US dollars (£1 billion).
Guang Yang, chief executive of HNA Capital US, said: " OMAM is a diversified, at-scale multi-boutique asset management franchise with an attractive portfolio of high-quality investment managers.
"We are pleased with our investment in OMAM and look forward to supporting OMAM's continued growth."
Old Mutual was advised on the deal by Bank of American Merrill Lynch, Evercore, Skadden Arps and Linklaters.